DOJ Catch of the Week

Catch of the Week

September 2017

  • September 29, 2017 –

    On Wednesday, AnMed Health agreed to pay more than $7 million to resolve allegations it violated the False Claims Act by submitting false Medicare claims for a variety of services, including radiation oncology services, emergency department services, and clinic services.

    Click here for more.
  • September 22, 2017 –

    Telia Company AB and its Uzbek subsidiary Coscom LLC. Yesterday, the international telecommunications company agreed to pay $965 million to resolve charges of violating the Foreign Corrupt Practices Act (FCPA) arising out of a scheme to pay bribes in Uzbekistan. According to the government, it is “one of the largest criminal corporate bribery and corruption resolutions ever.”

    Click here for more.
  • September 15, 2017 –

    MediSys Health Network, owner of New York City hospitals Jamaica Hospital Medical Center and Flushing Hospital and Medical Center. On Wednesday, the hospital system agreed to pay $4 million to settle charges of violating the False Claims Act and Stark Law by engaging in improper financial relationships with referring physicians.

    Click here for more.
  • September 8, 2017 –

    Novo Nordisk Inc. agreed to pay $58.65 million to settle charges it violated the False Claims Act and Food, Drug, and Cosmetic Act by failing to comply with the FDA-mandated Risk Evaluation and Mitigation Strategy (REMS) for its Type II diabetes medication Victoza.

    Click here for more.

August 2017

  • August 18, 2017 –

    Mylan Inc. and Mylan Specialty L.P. Yesterday, the pharmaceutical companies agreed to pay $465 million to settle charges they violated the False Claims Act by purposely misclassifying EpiPen as a generic drug to avoid paying higher Medicaid rebates.

    Click here for more.

July 2017

  • July 21, 2017 –

    Foundations Health Solutions Inc., Olympia Therapy Inc. and Tridia Hospice Care Inc., and their executives Brian Colleran and Daniel Parker, agreed to pay roughly $19.5 million to resolve allegations that they violated the False Claims Act by submitting to Medicare claims for medically unnecessary rehabilitation therapy and hospice services.

    Click here for more.

May 2017

  • May 19, 2017 –

    Mercy Hospital Springfield and its affiliate Mercy Clinic Springfield Communities (formerly known respectively as St. John’s Regional Health Center and St. John’s Clinic) agreed to pay $34 million to settle charges they violated the False Claims Act by engaging in improper financial relationships with referring physicians. 

    Click here for more.
  • May 5, 2017 –

    Import Merchandising Concepts L.P. and two affiliated individuals agreed to pay $275,000 to settle charges of violating the False Claims Act by evading customs duties on imports of wooden bedroom furniture from China.  The company imports, among other things, bedroom furniture for use in university student housing.

    Click here for more.

April 2017

  • April 28, 2017 –

    Indiana University Health Inc. and HealthNet Inc. agreed to pay $18 million to resolve allegations they violated the False Claims Act and Anti-Kickback Statute by engaging in an illegal kickback scheme related to the referral of HealthNet’s OB/GYN patients to IU Health’s Methodist Hospital.  Under the terms of the settlement, IU Health and HealthNet each will pay roughly $5.1 million to the United States and $3.9 million to the State of Indiana.

    Click here for more.

March 2017

  • March 10, 2017 –

    ZTE Corporation agreed to enter a guilty plea and pay a $430 million penalty for conspiring to violate the International Emergency Economic Powers Act by illegally shipping U.S.-origin items to Iran.  ZTE simultaneously reached settlements with the Department of Commerce’s Bureau of Industry and Security (BIS) and the Department of the Treasury’s Office of Foreign Assets Control for a total government payout of $892 million.  In addition, the BIS suspended an additional $300 million which ZTE will pay if it violates the settlement.

    Click here for more.

February 2017

  • February 10, 2017 –

    Comprehensive Health Services, Inc., one of the country’s largest providers of workforce medical services, agreed to pay roughly $3.8 million to settle charges it violated the False Claims Act by double-billing and mischarging the government for medical services in connection with work it performed on an Internal Revenue Service contract.

    Click here for more.
  • February 3, 2017 –

    Dr. Robert Windsor, owner of National Pain Care, Inc. which owns pain management clinics in Georgia and Kentucky, agreed to the entry of a $20 million consent judgment to resolve allegations he violated the False Claims Act by billing federal health care programs for surgical monitoring services he did not perform and for medically unnecessary diagnostic tests.

    Click here for more.

January 2017

  • January 20, 2017 –

    Deutsche Bank and Credit Suisse agreed to pay more than $12 billion between them to resolve charges they misled investors in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) in the years leading up to the Great Recession.  The $7.2 billion Deutsche Bank agreed to pay is the largest RMBS resolution in what has been a string of multi-billion dollar settlements.  Credit Suisse will pay $5.28 billion in its settlement. 

    Click here for more.
  • January 13, 2017 –

    Shire Pharmaceuticals LLC. and certain subsidiaries agreed to pay $350 million to settle charges that Shire and the company it acquired in 2011, Advanced BioHealing (ABH), violated the False Claims Act and Anti-Kickback Statute by using kickbacks and other unlawful methods to induce clinics and physicians to use or overuse their “Dermagraft” product.  Dermagraft is a bioengineered human skin substitute approved by the FDA for the treatment of diabetic foot ulcers.  It is the largest False Claims Act recovery in a kickback case involving a medical device. 

    Click here for more.

December 2016

  • December 16, 2016 –

    Forest Laboratories LLC and its subsidiary Forest Pharmaceuticals Inc. agreed to pay $38 million to resolve allegations they violated the False Claims Act and Anti-Kickback Statute by paying kickbacks to induce physicians to prescribe the drugs Bystolic, Savella and Namenda.

    Click here for more.
  • December 2, 2016 –

    A Houston jury found the entities formerly known as Allied Home Mortgage Capital Corp., Allied Home Mortgage Corp., and their president and chief executive officer Jim C. Hodge liable for violating the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”).  After a five-week trial, the jury awarded the United States roughly $93 million in damages, including more than $7 million against Hodge.  The Court will determine the amount of any penalties at a later date.

    Click here for more.

November 2016

  • November 18, 2016 –

    JPMorgan Chase and its Hong Kong-based subsidiary JPMorgan Securities (Asia Pacific) Limited agreed to pay a combined total of roughly $265 million to resolve foreign bribery charges relating to JPMorgan’s so-called Sons and Daughters Program.  This was a scheme in which the bank secured large business deals in China by awarding prestigious jobs to relatives and friends of Chinese government officials.

    Click here for more.
  • November 11, 2016 –

    Biocompatibles Inc., a subsidiary of British-based BTG plc., pleaded guilty and agreed to pay more than $36 million for violating the False Claims Act and Food, Drug and Cosmetic Act by misbranding its embolic device LC Bead, which is used to treat liver cancer, among other diseases.

    Click here for more.

October 2016

  • October 28, 2016 –

    Life Care Centers of America Inc., the Tennessee-based operator of more than 220 skilled nursing facilities, and its owner Forrest L. Preston, agreed to pay $145 million to resolve charges that Life Care violated the False Claims Act by submitting claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled.  It is the largest settlement with a skilled nursing facility chain in DOJ’s history.

    Click here for more.
  • October 21, 2016 –

    Omnicare, Inc., the Ohio-based nursing home pharmacy, the largest in the country, agreed to pay roughly $28 million to resolve charges of violating the False Claims Act by soliciting and receiving kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug, Depakote, for nursing home patients.  CVS Health Corporation acquired Omnicare last year, about six years after Omnicare ended the alleged misconduct.

    Click here for more.

September 2016

  • September 23, 2016 –

    North American Health Care Inc — along with its Chairman John Sorenson and Senior Vice President of Reimbursement Analysis Margaret Gelvezon — agreed to pay $30 million to resolve charges they violated the False Claims Act by billing for medically unnecessary rehabilitation therapy services. Under the settlement, the company agreed to pay $28.5 million, while Sorensen and Gelvezon agreed to pay $1,000,000 and $500,000, respectively.

    Click here for more.
  • September 16, 2016 –

    The Regions Bank agreed to pay $52.4 million settle charges that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements. Click here for more.

    Click here for more.
  • September 9, 2016 –

    U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc., along with their owners and presidents agreed to pay more than $12.2 million to resolve allegations that they violated the False Claims Act by making unsolicited calls to Medicare beneficiaries to sell them durable medical equipment.

    Click here for more.
  • September 2, 2016 –

    Physicians Group Services, P.A., doing business as Coastal Spine and Pain, the surgery and pain-management clinic, agreed to pay $7.4 million to settle charges it violated the False Claims Act by performing medically unnecessary drug screening procedures.

    Click here for more.

August 2016

  • August 19, 2016 –

    PNC Bank N.A. agreed to pay $9.5 million to resolve allegations it violated the False Claims Act in connection with the issuance of loans guaranteed by the Small Business Administration (SBA).

    Click here for more.
  • August 5, 2016 –

    St. Joseph’s Hospital Health Center agreed to pay $3.2 million to resolve allegations it violated the federal False Claims Act and New York False Claims Act by billing the state Medicaid program for mental health services provided by unqualified staff.

    Click here for more.

July 2016

  • July 29, 2016 –

    The Lexington County Health Services District Inc. (d/b/a Lexington Medical Center) agreed to pay $17 million to resolve allegations it violated the False Claims Act and the Physician Self-Referral Law (known as the Stark Law) by maintaining improper financial arrangements with 28 physicians.

    Click here for more.
  • July 15, 2016 –

    Evercare Hospice and Palliative Care, the Minnesota-based provider of hospice care, agreed to pay $18 million to resolve charges it violated the False Claims Act by claiming Medicare reimbursement for hospice care for patients not eligible for such care because they were not terminally ill.

    Click here for more.
  • July 1, 2016 –

    Volkswagen AG, the beleaguered German auto-maker and related entities, agreed to spend up to $14.7 billion in two related settlements to settle charges of cheating emissions tests and deceiving customers.  One settlement is with the United States and the State of California and the other is with the Federal Trade Commission.  The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3.

    Click here for more.

June 2016

  • June 24, 2016 –

    301 medical professionals were the target of the government’s healthcare fraud takedown involving roughly $900 million in alleged fraudulent Medicare and Medicaid billings.  The “unprecedented nationwide sweep” was led by the Medicare Fraud Strike Force and included the Medicaid Fraud Control Units of 23 states.  It is the largest coordinated healthcare fraud enforcement action in history, both in terms of the number of defendants charged and the losses alleged.

    Click here for more.
  • June 10, 2016 –

     Genentech Inc. and OSI Pharmaceuticals LLC., the San Francisco and New York-based pharmaceutical companies, agreed to pay $67 million to resolve charges they violated the False Claims Act by making misleading statements about the effectiveness of the drug Tarceva, which is approved to treat certain patients with non-small cell lung cancer or pancreatic cancer.

    Click here for more.

May 2016

  • May 27, 2016 –

    The Justice Department announced its decision to intervene in a whistleblower lawsuit filed under the False Claims Act against Prime Healthcare Services, its founder and CEO Dr. Prem Reddy, and 14 Prime hospitals in California.  The government alleges that at Dr. Reddy’s direction, these hospitals engaged in unnecessary inpatient admissions from their emergency rooms.

    Click here for more.
  • May 20, 2016 –

    Mountain States Contractors, an affiliated company of Jones Brothers, has agreed to pay $2.25 million to settle charges of violating the False Claims Act by submitting false claims for payment in connection with the Department of Transportation’s Disadvantaged Business Enterprise (“DBE”) Program.

    Click here for more.
  • May 13, 2016 –

    New York-based M&T Bank Corp. agreed to pay $64 million to settle charges it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements.  Specifically, the government alleged that M&T Bank failed to comply with certain FHA origination, underwriting and quality control requirements.

    Click here for more.
  • May 6, 2016 –

    Menlo Worldwide Services and Estes Forwarding Worldwide, the freight forwarding companies, has agreed to collectively pay $13 million to resolve allegations that they violated the False Claims Act by overcharging the government in various ways under the Defense Transportation Coordination Initiative contract.  Specifically, the government claimed it was overcharged by being billed the cost of moving freight by air when it was actually shipped by ground.

    Click here for more.

April 2016

  • April 29, 2016 –

    Wyeth and Pfizer, Inc., two pharmaceutical giants, agreed to pay $784.6 million to resolve allegations that Wyeth violated the False Claims Act by reporting false prices to the government.

    Click here for more.
  • April 22, 2016 –

    Bon Secours, a Maryland-based health system and one of its surgical oncologists, Dr. Eugene Chang agreed to pay $400,000 to settle charges of violating the False Claims Act by billing Medicare and other federal healthcare programs.

    Click here for more.
  • April 15, 2016 –

    Goldman Sachs and Wells Fargo Bank,  in separate ten-figure settlements they entered into this past week, each agreed to settle charges of various mortgage fraud machinations.

    Click here for more.
  • April 8, 2016 –

    Social Security Fraudsters — A retired administrative law judge, lawyer and a psychologist were charged for their alleged roles in a Kentucky-centered scheme to fraudulently obtain more than $600 million in Social Security disability payments.

    Click here for more.
  • April 1, 2016 –

    Kilgore Flares Company, a Tennessee-based defense contractor and one of its subcontractors, New York-based ESM Group Inc., agreed to pay $8 million to resolve charges they violated the False Claims Act by selling defective infrared countermeasure flares to the U.S. Army and, for ESM, knowingly evading U.S. customs duties.

    Click here for more.

March 2016

  • March 18, 2016 –

    Hayner Hoyt Corporation, a Syracuse-based government contractor, agreed to pay $5 million to settle charges that its chairman and chief executive officer Gary Thurston, its president Jeremy Thurston, and its affiliate companies LeMoyne Interiors and Doyner Inc., violated the False Claims Act by exploiting contracting opportunities reserved for service-disabled veterans.

    Click here for more.
  • March 11, 2016 –

    21st Century Oncology Inc., the nation’s largest physician led integrated cancer care provider agreed to pay $34.7 million to settle charges they violated the False Claims Act by fraudulent billings to patients.

    Click here for more.
  • March 4, 2016 –

    Olympus Corp. of America, the country’s largest distributor of endoscopes and related equipment agreed to pay $623.2 million to resolve criminal charges and civil claims for the company’s violations of the False Claims Act and Anti-Kickback Statute through a scheme to pay kickbacks to doctors and hospitals. Click here for more.

    Click here for more.

February 2016

  • February 26, 2016 –

    Pennsylvania-based Ameri-Source importer companies — Ameri-Source International Inc., Ameri-Source Specialty Products Inc., Ameri-Source Holdings Inc. — their owners, Ajay Goel and Thomas Diener, and the related importer, SMC Machining LLC, agreed to pay $3 million to resolve charges they violated the False Claims Act by engaging in a scheme to evade customs duties on imports of small-diameter graphite electrodes from China.  These rods are used as fuel in electric arc and ladle furnaces, such as those used in steel manufacturing.

    Click here for more.
  • February 22, 2016 –

    VimpelCom Limited, and its wholly owned Uzbek subsidiary, Unitel LLC, agreed to pay roughly $795 million under settlements with the DOJ, U.S. Securities and Exchange Commission and the Public Prosecution Service of the Netherlands (Openbaar Ministrie, or OM) to settle charges of violating the anti-bribery provisions of the Foreign Corrupt Practices Act.  Specifically, the companies admitted making more than $114 million in bribery payments to a government official in Uzbekistan to enable them to enter and continue operating in the Uzbek telecommunications market.  It is one of the largest global FCPA settlements ever and the largest case to date brought under the DOJ’s Kleptocracy Asset Recovery Initiative. 

    Click here for more.
  • February 12, 2016 –

    Morgan Stanley, the financial services firm, agreed to pay a $2.6 billion penalty “for misleading investors about the subprime mortgage loans underlying the securities it sold” in the period leading up to the financial crisis.

    Click here for more.
  • February 5, 2016 –

    Florida-based military contractor, Centerra Services International Inc. (formerly known as Wackenhut Services), agreed to pay $7.4 million to resolve allegations it violated the False Claims Act by double billing and inflating labor costs on its firefighting and fire protection services contract with the Army in Iraq.

    Click here for more.

January 2016

  • January 22, 2016 –

    CenterLight Healthcare, the New York-based company, was charged with improperly billing the New York Medicaid program for more than one-thousand members who did not meet the criteria of the managed care plan. The government also claimed CenterLight engaged in improper marketing practices to enroll members through social adult day care centers and induced them to use the day care centers as their primary source of personal care services.

    Click here for more.
  • January 15, 2016 –

    Kindred Healthcare, a Kentucky-based healthcare provider, and its two RehabCare Group subsidiaries agreed to pay $125 million to resolve allegations of violating the False Claims Act by knowingly causing skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, or that never occurred at all.

    Click here for more.
  • January 8, 2016 –

    Nashville Pharmacy Services, LLC – Mr. Hartman and his Nashville-based pharmacy that specializes in dispensing HIV and AIDS-related medications agreed to pay up to $7.8 million to settle charges they overbilled Medicare and TennCare for pharmacy services.

    Click here for more.

December 2015

  • December 18, 2015 –

    Qualitest Pharmaceuticals.  On Wednesday, the company’s corporate shell, Vintage Pharmaceuticals, its parent Endo Pharmaceuticals, and seven of their affiliates agreed to pay $39 million to settle charges they violated the False Claims Act by selling understrength chewable fluoride tablets.

    Click here for more.
  • December 11, 2015 –

    Tishman Construction Corporation, the construction company, one of the largest in New York City, agreed to pay more than $20 million to settle charges of overbilling customers over a ten-year period.  In announcing the settlement, U.S Attorney for the Eastern District of New York Robert L. Capers said “Tishman Construction bilked its clients by charging them for unworked time and at rates higher than those bargained for [and thereby] defrauded its clients and abused the trust placed in it to provide construction services on some of New York’s most storied buildings.”

    Click here for more.
  • December 4, 2015 –

    Pharmasan Labs, Inc. and its related billing company NeuroScience, Inc. agreed to pay $8.5 million to resolve charges they violated the False Claims Act by (i) submitting false information for laboratory services, and (ii) violating Medicare rules for services referred by non-physician practitioners.

    Click here for more.

November 2015

  • November 25, 2015 –

    In connection with its ongoing “Operation Spinal Cap” investigation of doctors and other healthcare professionals, the DOJ announced that the former CFO of Long Beach, California-based Pacific Hospital, two orthopedic surgeons and two others have been charged in long-running health care fraud schemes that illegally referred thousands of patients for spinal surgeries and generated nearly $600 million in fraudulent billings over an eight-year period.  The wide-ranging kickback scheme, which involved dozens of surgeons, orthopedic specialists, chiropractors, marketers and other medical professionals, involved improper referrals to Pacific Hospital and Hawaiian Hospital.

    Click here for more.
  • November 20, 2015 –

    Education Management Corp. (EDMC), the second-largest for-profit education company in the country, agreed to pay $95.5 million to resolves allegations it violated the federal False Claims Act and several state False Claims Acts by falsely certifying it was in compliance with Title IV of the Higher Education Act and parallel state statutes.  The Pittsburgh-based company operates nationwide and enrolls more than 100,000 students under four post-secondary school brands: the Art Institutes, South University, Argosy University and Brown-Mackie College.

    Click here for more.
  • November 6, 2015 –

    Massachusetts-based telecommunications software company NetCracker Technology Corp. agreed to pay $11.4 million to settle charges it violated the False Claims Act by using individuals without security clearance on a government defense contract.  As part of the settlement, Virginia-based information technology company Computer Sciences Corp. (CSC) also agreed to pay $1.35 million to settle the same False Claims Act charges.

    Click here for more.

October 2015

  • October 30, 2015 –

    Warner Chilcott US Sales LLC, a subsidiary of pharmaceutical manufacturer Warner Chilcott PLC, agreed to plead guilty to a felony charge of health care fraud as part of a global settlement in which Warner Chilcott agreed to pay $125 million to resolve its criminal and civil liability arising from illegally marketing the drugs Actonel, Asacol, Atelvia, Doryx, Enablex, Estrace and Loestrin in violation of the False Claims Act and Anti-Kickback Statute.

    Click here for more.
  • October 23, 2015 –

    Paris-based Crédit Agricole Corporate and Investment Bank, owned by Crédit Agricole S.A., agreed to forfeit $312 million and enter into a deferred prosecution agreement with the US Attorney’s Office of the District of Columbia for violating the International Emergency Economic Powers Act and the Trading With the Enemy Act. The bank also entered into settlement agreements with the Treasury Department’s Office of Foreign Assets Control, the Board of Governors of the Federal Reserve System, the New York County District Attorney’s Office and the New York State Department of Financial Services.  In total, Crédit Agricole will pay $787.3 million in criminal and civil financial penalties.

    Click here for more.
  • October 16, 2015 –

    The Boeing Company, the Chicago-based aerospace and defense industry giant agreed to pay $18 million to settle charges it violated the False Claims Act by submitting false claims for labor charges on maintenance contracts with the US Air Force.

    Click here for more.
  • October 9, 2015 –

    Kentucky-based PharMerica Corp., the nation’s second-largest nursing home pharmacy, agreed to pay $9.25 million to resolve allegations it violated the False Claims Act by soliciting and receiving kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the anti-epileptic prescription drug Depakote for nursing home patients.

    Click here for more.
  • October 2, 2015 –

     L-3 Communications Corporation and its affiliated entities Vertex Aerospace LLC and L-3 Communications Integrated Systems LP agreed to pay $4.63 million to resolve allegations it inflated labor hours for time spent by independent contractors at the military’s Continental US Replacement Centers (CRC) in Fort Benning, Georgia, and Fort Bliss, Texas.  The CRCs prepare individuals for deployment to overseas posts to support US military operations by providing orientation briefings, training, health screenings, payroll processing and addressing other administrative matters.

    Click here for more.

September 2015

  • September 25, 2015 –

    Stewart Parnell, former owner and president of Peanut Corporation of America, was sentenced to 28 years in prison for his role in shipping salmonella-positive peanut products before the results of microbiological testing were received and falsifying microbiological test results.  It is the largest criminal sentence ever in a food safety case.

    Click here for more.
  • September 18, 2015 –

    General Motors, the Detroit-based manufacturer of Chevrolet, Pontiac and Saturn brand vehicles, among others, entered into a deferred prosecution agreement with a host of federal regulators to settle criminal and civil charges of failing to disclose a deadly safety defect in its cars relating to the ignition switch.  Under the agreement — with the DOJ, Department of Transportation, the National Highway Traffic Safety Administration (NHTSA), the Troubled Asset Relief Program and the FBI — GM will pay $900 million and have an independent monitor appointed to oversee GM’s reporting of safety Issues and public statements.  GM admits it failed to disclose the safety defect to NHTSA and misled US consumers about it.

    Click here for more.
  • September 4, 2015 –

    Genzyme Corporation, a wholly-owned biotechnology subsidiary of French pharmaceutical company Sanofi, agreed to resolve criminal charges it violated the Food, Drug and Cosmetic Act (FDCA) with regard to the unlawful distribution of the surgical device Seprafilm.  As part of the agreement, Genzyme agreed to admit to the facts underlying the charges and pay a monetary penalty of $32,587,439.  It also agreed to undertake several groundbreaking measures to enhance its internal compliance program.  The conduct at issue occurred prior to Sanofi’s acquisition of Genzyme in 2011.

    Click here for more.

August 2015

  • August 21, 2015 –

    On Wednesday, the Northern Virginia-based companies, US Investigations Services Inc. (USIS) and its parent company, Altegrity, agreed to settle charges that USIS violated the False Claims Act by failing to provide proper background checks as required under its contract with the  Office of Personnel Management (OPM).  As part of the settlement, USIS and Altegrity agreed to forgo $30 million in payments they claim OPM owed them.

    Click here for more.
  • August 14, 2015 –

    PC Specialists Inc., doing business as Technology Integration Group (TIG), agreed to pay $5.9 million to settle charges it inflated the price of computers sold through another company to the National Nuclear Security Administration (NNSA) for use at Sandia National Laboratories in Albuquerque, New Mexico. 

    Click here for more.

July 2015

  • July 31, 2015 –

    Yesterday, NuVasive Inc. agreed to pay $13.5 million to resolve charges it improperly promoted the company’s CoRoent System for spine surgeries for uses not approved by the Food and Drug Administration.  The settlement also resolves allegations NuVasive paid illegal kickbacks to induce physicians to use the company’s CoRoent System.

    Click here for more.
  • July 14, 2015 –

    Last Friday, the Department of Justice secured a 45-year prison sentence against the now infamous Detroit-area doctor, Farid Fata.  He was also ordered to forfeit $17.6 million of illegal reimbursements he obtained from Medicare and private insurance companies.  This stems from his guilty plea in September 2014 to violating the False Claims Act with a health care fraud scheme that included administering medically unnecessary infusions or injections to 553 individual patients and submitting $34 million worth in fraudulent healthcare claims.  “Rather than use his medical degree to save lives, Dr. Fata instead destroyed them in pursuit of profit,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. 

    Click here for more.
  • July 10, 2015 –

    On Monday, AstraZeneca LP and Cephalon Inc. each of these pharmaceutical companies agreed to settle charges they violated the False Claims Act by knowingly underpaying rebates they owed under the Medicaid Drug Rebate Program.  AstraZeneca agreed to pay $46.5 million with roughly $26.7 million going to the United States and the balance going to various states.  Cephalon agreed to pay the United States and participating states a total of $7.5 million.

    Click here for more.
  • July 2, 2015 –

    On Tuesday, VMware Inc. and Carahsoft Technology Corporation agreed to pay $75.5 million to settle charges they violated the False Claims Act by misrepresenting their commercial pricing practices and overcharging the government on VMware software products and related services.  Palo Alto-based VMware specializes in computer virtualization software and Virginia-based Carahsoft distributes information technology products to federal, state and local governments.

    Click here for more.

June 2015

  • June 26, 2015 –

    Education Affiliates, the for-profit education company, agreed to pay $13 million to settle charges it violated the False Claims Act by submitting false claims to the Department of Education for federal student aid.  The Maryland-based company operates 50 campuses in the US under various trade names, including All State Career, Fortis Institute, Fortis College, Tri-State Business Institute Inc., Technical Career Institute Inc., Capps College Inc., Driveco CDL Learning Center, Denver School of Nursing and Saint Paul’s School of Nursing.  They provide post-secondary education training programs in several professions in the states of Alabama, Florida, Maryland, Ohio and Texas.

    Click here for more.
  • June 19, 2015 –

    On Tuesday, Hebrew Homes Health Network Inc., a Florida-based operator of rehabilitation and skilled nursing facilities. — along with its former president and executive director William Zubkoff — agreed to pay $17 million to resolve allegations it violated the False Claims Act by improperly paying doctors for referrals of Medicare patients requiring skilled nursing care.  It is the largest settlement involving alleged violations of the Anti-Kickback Statute by skilled nursing facilities in the US.

    Click here for more.
  • June 5, 2015 –

    First Tennessee Bank agreed to pay $212.5 million to resolve allegations it violated the False Claims Act by originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements.

    Click here for more.

May 2015

  • May 29, 2015 –

    On Wednesday, Orbit Medical Inc. and its partial successor, Rehab Medical Inc, agreed to pay $7.5 million to settle False Claims Act charges that Orbit submitted false claims to federal health care programs for power wheelchairs and accessories.

    Click here for more.
  • May 22, 2015 –

    On Tuesday, the Atlanta-based world-wide package delivery service agreed to pay $25 million to resolve allegations it violated the False Claims Act by submitting false claims to the federal government in connection with its delivery of Next Day Air overnight packages.

    Click here for more.
  • May 15, 2015 –

    PharMerica agreed to pay $31.5 million to settle charges it violated the Controlled Substances Act by dispensing Schedule II controlled drugs without a valid prescription and violated the False Claims Act by submitting false claims to Medicare for these improperly dispensed drugs.

    Click here for more.
  • May 8, 2015 –

    Hospital chain Health Management Associates Inc. and 14 hospitals it previously owned and operated agreed to collectively pay $15.69 million to settle whistleblower charges they violated the False Claims Act by seeking and receiving Medicare reimbursement for Intensive Outpatient Psychotherapy (IOP) services that were not medically reasonable or necessary.

    Click here for more.

April 2015

  • April 24, 2015 –

    Deutsche Bank AG and its UK-based subsidiary DB Group Services (UK) Limited agreed to pay more than $2.5 billion to settle US and UK charges relating to their role in manipulating the London Interbank Offered Rate (LIBOR).

    Click here for more.
  • April 10, 2015 –

    Virginia-based cardiovascular testing disease laboratory Health Diagnostics Laboratory Inc. agreed to pay $47 million to resolve allegations it violated the False Claims Act by paying kickbacks to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing.  A second cardio testing lab, California-based Singulex Inc., agreed to settle similar charges by paying $1.5 million.

    Click here for more.
  • April 3, 2015 –

    Medical device maker Medtronic plc and affiliated Medtronic companies, Medtronic Inc.,Medtronic USA Inc., and Medtronic Sofamor Danek USA Inc.  agreed to pay $4.4 million to resolve allegations they violated the False Claims Act by making false statements to the Department of Veterans Affairs and the Department of Defense regarding the country of origin of certain Medtronic products sold to the US.

    Click here for more.

March 2015

  • March 27, 2015 –

    Oil services company Schlumberger Oilfield Holdings Ltd. (SOHL) agreed to enter a guilty plea and pay a $232,708,356 penalty for violating the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan. The monetary penalty includes a $77,569,452 criminal forfeiture and a $155,138,904 criminal fine. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.

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  • March 20, 2015 –

    Bank of New York Mellon (BNYM) agreed to pay $714 million to settle charges that the bank engaged in fraud and other misconduct when providing foreign exchange (“FX”) services to its customers. The settlement resolves lawsuits brought by the United States and New York State, private class action lawsuits brought by BNYM customers, and investigations by the Securities and Exchange Commission and the Department of Labor.

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  • March 13, 2015 –

    Global financial institution Commerzbank AG and its US branch agreed to forfeit $563 million and pay a $79 million fine for violations of the International Emergency Economic Powers Act (IEEPA) and the Bank Secrecy Act (BSA). The bank has also entered into settlement agreements with the Treasury Department’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System, and the New York State Department of Financial Services for a combined regulatory payout of $1.45 billion.

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February 2015

  • February 27, 2015 –

    MetLife Home Loans LLC, a wholly-owned subsidiary of MetLife Inc., agreed to pay $123.5 million to resolve allegations it violated the False Claims Act. Specifically, the government charged that MetLife Bank knowingly originated and underwrote mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements. MetLife Bank was a banking services company which in 2013 merged into MetLife Home Loans.

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  • February 20, 2015 –

    Hospice services provider Compassionate Care Hospice Group agreed to pay $6.7 million to settle charges it violated the federal and New York False Claims Acts by submitting claims to Medicare and Medicaid for hospice nursing services not actually or adequately provided.  Specifically, the government alleged CCH nurses routinely missed their required visits and then falsified nursing notes in patients’ files to make it appear as though the visits had been performed.  The charges originated in a whistleblower lawsuit filed by a former employee under the qui tam provisions of the False Claims Act.

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  • February 12, 2015 –

    Delaware-based pharmaceutical manufacturer AstraZeneca LP agreed to pay $7.9 million to settle charges it violated the False Claims Act by engaging in an illegal kickback scheme with pharmacy benefit manager Medco Health Solutions.  According to the government, AstraZeneca, among other things, agreed to provide remuneration to Medco in exchange for Medco maintaining for AstraZeneca’s Nexium drug “sole and exclusive” status on certain Medco formularies and through other marketing activities.  The charges originated with a whistleblower lawsuit filed by former AstraZeneca employees Paul DiMattia and F. Folger Tuggle under the qui tam provisions of the False Claims Act.  They will collectively receive a whistleblower award of $1,422,000.

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  • February 6, 2015 –

    Ratings agency giant Standard & Poor’s Financial Services (S&P), along with its parent corporation McGraw Hill Financial Inc., agreed to pay $1.375 billion to settle charges it schemed to defraud investors in structured financial products known as Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs).  According to the government, S&P falsely represented that its ratings of RMBS and CDOs were objective, independent and uninfluenced by S&P’s business relationships with the investment banks that issued the securities.  Instead, S&P issued inflated ratings that misrepresented the securities’ true credit risks causing RMBS and CDO investors to incur substantial losses.

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January 2015

  • January 23, 2015 –

    The New York US Attorney’s Office and the FBI jointly announced their arrest of New York State Assembly Speaker Sheldon Silver on charges he used his official position to receive nearly $4 million in bribes and kickbacks concealed as income from an outside law practice.  According to the charges, for more than two decades Silver used his power as New York’s top legislator to obtain client referrals worth millions of dollars in exchange for his official acts.  And he attempted to disguise this money as legitimate outside income earned from work as a private lawyer with Manhattan-based personal injury law firm, Weitz & Luxenberg P.C.

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  • January 9, 2015 –

    The DOJ intervened in two whistleblower lawsuits alleging Florida cardiologist Dr. Asad Qamar and his physician group, the Institute for Cardiovascular Excellence, violated the False Claims Act by billing Medicare for medically unnecessary peripheral artery interventions and paid kickbacks to patients by waiving Medicare copayments irrespective of their ability to pay. Qamar is one of the nation’s top-billing doctors, collecting more than $18 million in payments from Medicare in 2012. The whistleblower lawsuits were brought under the qui tam provisions of the False Claims Act.

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December 2014

  • December 24, 2014 –

    French power and transportation company Alstom S.A. pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA) and agreed to pay a whopping $772 million to resolve charges of a widespread international bribery scheme. According to DOJ Deputy Attorney General James M. Cole, Alstom’s corruption scheme “was astounding in its breadth, its brazenness and its worldwide consequences.”

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  • December 19, 2014 –

    New York-based cosmetic giant Avon Products Inc. and its wholly owned subsidiary Avon Products (China) Co. Ltd. pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA) by making and concealing illicit payments to Chinese government officials to secure business there. The company agreed to pay more than $135 million in criminal and regulatory penalties to resolve the charges. According to the government, from at least 2004 through 2008, Avon and Avon China conspired to falsify Avon’s books to disguise more than $8M worth of gifts, travel, meals and entertainment that Avon China executives gave to Chinese officials.

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  • December 12, 2014 –

    Medical products manufacturer OtisMed Corp. and its former CEO Charlie Chi agreed to pay more than $80M to resolve its related criminal and civil liability for distributing an adulterated medical device in violation of the Food, Drug, and Cosmetic Act (FDCA), and submitting fraudulent claims in violation of the False Claims Act.

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  • December 5, 2014 –

    Maricopa County Community College District, the entity responsible for operating community colleges in Maricopa County, Arizona, agreed to pay $4.08 million to resolve charges it violated the False Claims Act by submitting false claims to the Corporation for National and Community Service concerning AmeriCorps state and national grants.

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November 2014

  • November 14, 2014 –

    Home healthcare agency CareAll Management LLC agreed to pay $25 million to settle charges it violated the False Claims Act by submitting false and upcoded home healthcare billings to Medicare and Medicaid.  According to the government, between 2006 and 2013, CareAll overstated the severity of patients’ conditions to increase billings and billed for services that were not medically necessary and rendered to patients who were not homebound.  The current allegations first arose in a whistleblower lawsuit filed by Toney Gonzales under the qui tam provisions of the False Claims Act.

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  • November 7, 2014 –

    South Korea automakers Hyundai Motor Company and Kia Motors Corporation agreed to pay $100M to settle charges they violated the Clean Air Act by selling more than one million vehicles that will emit roughly 4.75 million metric tons of greenhouse gases in excess of what they certified to the Environmental Protection Agency (EPA).  It is the largest civil penalty in Clean Air Act history.  In addition to the monetary penalty, Hyundai and Kia will spend roughly $50M to prevent any future violations and forfeit 4.75 million greenhouse gas emission credits worth more than $200M.

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October 2014

  • October 31, 2014 –

    Columbia University agreed to pay $9 million to settle allegations it defrauded the government of grant funding for AIDS and HIV related work.  Specifically, the government charged that as the grant administrator for ICAP (formerly known as International Center for AIDS Care and Treatment Programs), Columbia was required but failed to verify for nearly 200 ICAP employees that they performed the work for which they received grant funding. This resulted in Columbia obtaining grants for work that was not actually performed on the project being funded.

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  • October 24, 2014 –

    DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the US, agreed to pay $400M to resolve claims it violated the False Claims Act by paying kickbacks for patient referrals to its dialysis clinics.  It is the largest healthcare kickbacks case to date.  According to the government, for the past decade DaVita used a sophisticated three-part joint venture business model to induce patient referrals to its clinics.  The allegations in this case originated from a whistleblower lawsuit brought by former DaVita Senior Financial Analyst David Barbetta under the qui tam provisions of the False Claims Act.

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  • October 17, 2014 –

    The DOJ joined a whistleblower lawsuit filed under the False Claims Act against Sikorsky Aircraft Corporation and two of its subsidiaries, Sikorsky Support Services Inc. and Derco Aerospace Inc.  The government’s complaint alleges Sikorsky Aircraft approved an illegal cost-plus-a-percentage-of-cost subcontract between Sikorsky Support Services and Derco.  This is a contract where the cost of performance is unknown and compensation is based on the cost of performance plus an agreed-to percentage of such costs.  These contracts are barred by the government because they give government contractors no incentive to control their cost of performance.  The government claims the Sikorsky group employed this illegal subcontract to overcharge the Navy on parts and materials used to maintain Navy aircraft.

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  • October 10, 2014 –

    Virginia based telecommunications services provider DRS Technical Services Inc. agreed to pay $13.7 million to settle charges it violated the False Claims Act by overbilling the government for work performed by DRS personnel who lacked the job qualifications required by the company’s government contract.  The work related to DRS contracts with the US Army’s Communication and Electronics Command (CECOM) in Iraq and Afghanistan and the Coast Guard’s Aviation Logistics Center.

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  • October 3, 2014 –

    Pharmacy benefit management (PBM) company Caremark LLC, owned by CVS Caremark, agreed to pay $6 million to settle charges of failing to reimburse Medicaid for prescription drug costs that should have been paid for by Caremark-administered private health plans.

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September 2014

  • September 26, 2014 –

    Pennsylvania-based drug maker Shire Pharmaceuticals agreed to pay $56.5 million to settle charges it violated the False Claims Act through improper marketing and promotion of several drugs used to treat attention deficit hyperactivity disorder (ADHD) and ulcerative colitis.  The government’s allegations arose from two whistleblower lawsuit filed by several former Shire employees under the qui tam provisions of the False Claims Act.

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  • September 19, 2014 –

    Fort Lauderdale based A Plus Home Health Care Inc.  and its owners agreed to pay $1.65 million to settle charges A Plus paid spouses of referring physicians for sham marketing positions to induce patient referrals.  The government alleged these payments constituted illegal kickbacks in violation of the False Claims Act.  According to the government, the company allegedly hired at least seven spouses and one boyfriend of physicians to perform marketing duties but required them to do little if any real work.  Their salaries instead were allegedly for the purpose of inducing and rewarding the physicians’ referrals of Medicare patients to A Plus.

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  • September 12, 2014 –

    The government announced its filing of two False Claims Act lawsuits against spinal implant company Reliance Medical Systems, two of its distributorships — Apex Medical Technologies andKronos Spinal Technologies — and Michigan neurosurgeon Dr. Aria Sabit.  The complaints allege Apex and Kronos paid physicians, including Sabit, to induce them to use Reliance spinal implants in the surgeries they performed some of which were excessive or medically unnecessary.

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  • September 5, 2014 –

    London-based medical device maker Smith & Nephew agreed to pay $11.3 million to settle charges it sold the government orthopaedic products it claimed were US-made but actually came from Malaysia.  The settlement ends a whistleblower lawsuit brought in 2008 under the qui tam provisions of the False Claims Act by former Smith & Nephew information technology manager Samuel Cox.  This is apparently the first whistleblower settlement involving false country of origin claims for medical devices.

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August 2014

  • August 22, 2014 –

    North Carolina-based banking giant Bank of America agreed to pay $16.65 billion to resolve federal and state mortgage fraud claims against the bank and its former and current subsidiaries, includingCountrywide Financial Corporation and Merrill Lynch.  It is the largest civil settlement with a single entity in American history.  As part of the settlement, the bank admitted misrepresenting to investors the quality of the billions of dollars of mortgage loans it sold to investors including Fannie Mae, Freddie Mac and the Federal Housing Administration.

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  • August 8, 2014 –

    Tennessee-based Community Health Systems, Inc., the largest  operator of acute care hospitals in the country with 206 affiliated hospitals in 29 states, agreed to pay $98 million to resolve charges of billing the government for inpatient services that should have been billed as significantly less expensive outpatient or observation services.  Specifically, the government claimed Community Health at more than one-hundred of its hospitals routinely admitted Medicare, Medicaid and TRICARE (military) beneficiaries over the age of 65 for inpatient services that were not medically necessary and when less costly outpatient or observations services would have sufficed.

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  • August 1, 2014 –

    Minneapolis-based medical device maker Vascular Solutions Inc. (VSI) agreed to pay $520,000 to resolve allegations it violated the False Claims Act by marketing a product for sealing veins without FDA approval.  Specifically, the government charged that VSI marketed and sold its “Vari-Lase Short Kit” for treating perforator veins (which run deep in the leg muscle) even though the FDA approved the device only for treating surface (or superficial) veins.

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July 2014

  • July 25, 2014 –

    Alabama-based hospital system Infirmary Health System Inc., along with two affiliated clinics and Diagnostic Physicians Group, agreed to pay $24.5M to resolve government allegations they violated the False Claims Act, the Anti-Kickback Statute and the Stark Law by paying or receiving financial inducements for medical referrals covered by Medicare.

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  • July 18, 2014 –

    Citigroup agreed to pay $7B to resolve government claims related to the bank’s sale and issuance of residential mortgage-backed securities (RMBS) which according to the government “contributed mightily to the financial crisis that devastated our economy in 2008.”  The settlement includes a $4B penalty — the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

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  • July 11, 2014 –

    Virginia-based move management company, RE/MAX Allegiance Relocation Services, agreed to pay roughly half a million dollars to resolve allegations it violated the False Claims Act by charging the government for federal employee relocation services it never provided and charging inflated rates for relocation services it did provide by charging inapplicable tariff rates.

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  • July 3, 2014 –

    French banking giant BNP Paribas agreed to pay $8.9 billion and plead guilty to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions.   It is the first time a global bank has pleaded guilty to large-scale, systematic violations of U.S. economic sanctions.

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June 2014

  • June 27, 2014 –

    Ohio-based Omnicare Inc., the country’s largest provider of pharmaceuticals and pharmacy services to nursing homes, agreed to pay $124 million to settle government charges of offering improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to their elderly Medicare and Medicaid patients.

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  • June 20, 2014 –

    SunTrust Mortgage Inc., the mortgage lending arm of SunTrust Bank, agreed to pay $968 million to resolve charges of mortgage origination, servicing, and foreclosure abuses.

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  • June 6, 2014 –

    Iowa-based egg producer Quality Egg, a former powerhouse in the egg industry, pleaded guilty to, and agreed to a $6.8 million fine for, bribing government safety inspectors and violating food safety rules which ultimately led to a nationwide salmonella outbreak in 2010. If accepted by the court, it will be one of the largest payments ever made related to food safety. Quality Egg’s owner, Jack DeCoster, and his son Peter, also pleaded guilty to one count of introducing adulterated food into interstate commerce.

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May 2014

  • May 30, 2014 –

    King’s Daughters Medical Center, a large hospital in northeast Kentucky agreed to pay $41 million to resolve government charges that it violated theFalse Claims Act by submitting claims to Medicare and Kentucky Medicaid programs for medically unnecessary cardiology procedures.  It is one of the largest settlements to date in the federal crackdown on unnecessary heart procedures.

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  • May 23, 2014 –

    Swiss banking giant, Credit Suisse, pled guilty to criminal charges of conspiring to help thousands of US taxpayers evade taxes and agreed to pay fines and restitution amounting to $2.6 billion. It is the first big bank to plead guilty to illegal activity since Drexel Burnham Lambert in 1989.

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  • May 15, 2014 –

    Student loan giant Sallie Mae and its former loan-servicing arm, Navient Solutions agreed to pay nearly $100 million to settle allegations that they violated the Servicemembers Civil Relief Act (SCRA) by charging members of the military excessive interest rates and late fees on student loans.

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  • May 8, 2014 –

    Baptist Health Systems Inc., a network of affiliated hospitals and medical providers in the Jacksonville, Florida area, agreed to pay $2.5 million to settle allegations that its subsidiaries violated the False Claims Act by submitting claims to Medicare and Medicaid for medically unnecessary services and drugs.

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